Expression for probability of overbooking


A common practice of airline companies is to sell more tickets for particular flight than there are seats on plane. It happens which customers who purchases tickets don't always show up for the flight. Assume that for each person the chance of not showing at flight time is 1.5%.

(a) Find out an expression for probability of overbooking a particular flight with 300 seats, when the number of tickets sold by airline company is equal 300 + m for some positive integer m.

(b) For a particular flight with 300 seats, find out the number of tickets which can be sold by the airline company so that the probability of overbooking flight is around 31%.

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Basic Statistics: Expression for probability of overbooking
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